Economics drives most media companies mostly because of advertising or sales. Pretty much all income for media companies is driven by the books they publish, the movies that they make, recorded music..etc. These aspects of the company are what they sell to the consumer. Without the success of the things they produce they would not generate a profit. Commercial television, magazines, newspaper and radio rely heavily on advertising. Without advertising people would not be as aware and promoting the products would be close too impossible. Therefore without advertising media companies would not generate a profit. Advertising is a major cost for media companies yet it is extremely effective in generating a profit.
The mix of revenue through all these different aspects of a company are extremely important in being successful or being a failure. All the big time media companies focus on all aspects of the economics applied within their company and without that focus they would ultimately fail.
No comments:
Post a Comment